New York has granted the first permit for a Japanese yen-backed stablecoin to operate in the United States
According to an announcement made on December 29, the New York Treasury Department has issued a charter to Japanese company GMO-Z.com for handling USD and yen-backed stablecoins in New York.
Given New York’s status as a global center, the NYDFS is the most well-known government financial regulator in the United States. She is also one of the most aggressive. A passport for operating in New York often opens the rest of the country.
GMO’s charter is more of a trust company with limited liability than a full bank. The main difference is the authorization to process deposits. While a stablecoin operator typically requires the ability to hold reserves for the tied asset, GMO’s charter limits their rights to hold other types of deposits necessary for their ability to “spend, manage, and redeem” their stablecoins. , are not central.
The right to issue such non-custodian charters has been a point of contention between state regulators such as the NYDFS and national banking regulators in the United States
Ken Nakamura, President and CEO of GMO, said, “We are moving forward with our move to issue the first regulated JPY-linked stablecoin that many consider a safe haven.”
NYDFS recently made changes to its famous BitLicense, including a conditional format that brings newly licensed companies together with existing licensees. The first conditional BitLicense went to PayPal and enabled the start of its new crypto services at the beginning of autumn with the help of the long-standing licensee Paxos.